The automated Quantcha Trade Ideas Service has detected a promising Bear Call Spread trade opportunity for FINISH LINE (FINL) for the 16-Feb-2018 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

FINL was recently trading at $13.80 and has an implied volatility of 46.78% for this period. Based on an analysis of the options available for FINL expiring on 16-Feb-2018, there is a 34.14% likelihood that the underlying will close within the analyzed range of $11.79-$13.87 at expiration. In this scenario, the average linear return for the trade would be 40.26%.

Big -7.38% Change: After closing the last trading session at $14.90, FINISH LINE opened today at $14.94 and has reached a low of $13.77.

Trade approach: A movement as big as -7.38% is a significantly bearish indicator, so this trade is designed to be profitable if FINL maintains its current direction and does not revert back to pricing on the bullish side of $13.80 on 16-Feb-2018. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if FINISH LINE closes at or below $14.00 on 16-Feb-2018. Based on our risk-neutral analysis, there is a 52.38% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.